SCENARIO 16-13 Given Below Is the Monthly Time Series Data for U.S.retail

question 49

True/False

SCENARIO 16-13
Given below is the monthly time series data for U.S.retail sales of building materials over a specific year.
The results of the linear trend,quadratic trend,exponential trend,first-order autoregressive,second-order autoregressive and third-order autoregressive model are presented below in which the coded month for the 1^st month is 0:
Linear trend model:

Quadratic trend model:
Third-order autoregressive::

Below is the residual plot of the various models:

-Referring to Scenario 16-13,you can conclude that the quadratic term in the quadratic-trend model is statistically significant at the 5% level of significance.

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Definitions:

Consumers Spend

The total amount of money expended by consumers on goods and services within a specific time period.

Total Revenue

The total receipts a firm obtains from the sale of goods or services, calculated as the quantity sold multiplied by the price.

Declines

Situations where quantities, values, or levels decrease over a period.

Unregulated Pure Monopolist

A market condition where a single firm dominates the market without any regulatory oversight, controlling the price and supply of a good or service.